Italian maker of braking systems Brembo has acquired an interest in tyre maker Pirelli. Through its parent company Nuova FourB, which is an investment company, Brembo now holds a 2.43% stake in Pirelli. Terms were not disclosed.
By adopting a long-term non-speculative approach, Brembo says it has autonomously decided to invest in Pirelli, “whose history, brand, leading position and innovation-oriented approach makes it, just like Brembo, an excellent and particularly significant company in its industry”.
Brembo operates in three continents with production facilities in 14 countries.
This year its Brembo’s revenues decreased by 1.8% to EUR2.5 billion (-1.3% compared to last year), while Pirelli has announced strategies to reign in investments, forecasts for the year, given the Covid-19 pandemic.
Chairman of Brembo Alberto Bombassei, in announcing the financials, had stated: “Brembo’s operating results in 2019, show that company succeeded in effectively managing its long-term strategies within a particularly challenging market environment, which throughout the year has impacted the automotive industry at world level. Despite a slight decline compared with the 2018 results, Brembo continued to outperform the average of its reference market, while also succeeding in retaining strong margin levels. The business sectors related to motorbikes, commercial vehicles and racing applications showed improving results due to an integrated portfolio of innovative solutions capable of meeting customers’ constantly increasing needs for excellence, quality and design.”